New York Court of Appeals Rejects Martin Act Preemption of Common Law Claims of Breach of Fiduciary Duty and Gross Negligence
Yesterday in Assured Guaranty (UK) Ltd. v. J.P. Morgan Investment Management Inc., 2011 N.Y. Slip Op. 09162 (N.Y. Dec. 20, 2011), the New York Court of Appeals ruled that the Martin Act does not preempt common law claims of breach of fiduciary duty and gross negligence in the securities context. The Court also stated in dicta that common law fraud claims are not preempted.